FXI Dividend Type Payments
Although FXI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares China Large-Cap ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
iShares China Large-Cap ETF (FXI) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
25.50 | 25.52 | 25.52 | +0.13 | 24.6M | - | 4.9B |
FXI Dividend-Like Income Using Covered Calls
With FXI at 25.52, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:
Annual Yield | Annual Premium | Cents/Day |
---|---|---|
3% | 0.77 | 0.2 |
5% | 1.28 | 0.3 |
10% | 2.55 | 0.7 |
So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:
3% Yield On FXI Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 2 | 25.50 | 0.35 | 8 | 4.1 | 0.00 (0.0%) | |
Aug 9 | 25.50 | 0.49 | 15 | 3.1 | 0.00 (0.0%) |
5% Yield On FXI Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 2 | 25.50 | 0.35 | 8 | 4.1 | 0.00 (0.0%) | |
Aug 9 | 25.50 | 0.49 | 15 | 3.1 | 0.00 (0.0%) |
10% Yield On FXI Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 2 | 25.50 | 0.35 | 8 | 4.1 | 0.00 (0.0%) | |
Aug 9 | 25.50 | 0.49 | 15 | 3.1 | 0.00 (0.0%) |
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Top 10 Open Interest For Aug 16 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | TSLA dividend | 1. | SNAP dividend | |
2. | IWM dividend | 7. | SIRI dividend | 2. | TDOC dividend | |
3. | QQQ dividend | 8. | AAPL dividend | 3. | NET dividend | |
4. | FXI dividend | 9. | AMZN dividend | 4. | CLSK dividend | |
5. | SPY dividend | 10. | SLV dividend | 5. | TEAM dividend |
Want more examples? FXH Dividend | FXL Dividend